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Shares of the diversified company in the lighting, appliances, television, aircraft and financial services industries rose 2 to 122. The stock earlier hit an intraday high of 122 1/2.

Analyst Jeanne Terrile said that while the stock has risen 50 percent over the past 12 months, it still has upside potential. She cites a stronger global economy that would help GE's worldwide businesses and an improving perception of the company's post-Jack Welch management.

Terrile also said that the Paxon purchase by its NBC unit will not dilute shareholder value as has been GE's practice historically on properties it purchases.

In addition, the Internet also will continue to cut GE's costs. For example, a service call normally costs the company an average of $5, Terrile said. Using the Net would lower it to 20 cents. An online presence already is benefiting GE Capital, the company's financial services unit, leading to higher revenues and lower costs. Terrile believes GE Capital's sales growth could exceed 20 percent soon.

Lastly, she said GE may have "hidden values." An Internet company named Chemdex, which puts together buyers and sellers of small amounts of specialty chemicals, recently was valued at 1000 times future sales after its initial public offering. GE's Polymerland unit, a $700 million business, does the same thing for plastics. But unlike Chemdex, Polymerland is profitable, Terrile said.

Based on the same valuation, Polymerland would be worth twice GE's total market capitalization of $400 billion. While Terrile doesn't think this scenario is probable, "it is nice to know that a company as well known as GE still has hidden value."

GE
ge
revenues were $51.6 billion for the six months ended June 30, up 8 percent from the comparable period a year ago. Net income rose 15 percent to $4.98 billion, reflecting an improved operating margin.

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